New Delhi: It seems like the big fat startup party in India is coming to an end. In line with a lot of new startups, Gold loan provider Rupeek has laid off 200 of its employees, according to a report by Economic Times. The step has reportedly been taken to cut the costs of the company. Weakening global macro conditions along with high inflation have forced several startups to lay off hundreds of their employees.
Indian startups like Unacademy, Meesho and Better.com have laid off their employees in order to control the costs. The list, however, does not end here. According to a report by Inc42, over 9,000 employees have been laid off by Indian startups like Cars24, Ola and others.
This is also due to more cautious funding by the investors, amid economic uncertainties. On a month-on-month basis, the funding in May 2022 fell by 53 per cent to $1.3 billion. April 2022 saw a fund inflow of $3.4 billion.
What does Rupeek do?
Rupeek is an Indian start-up that provides gold loans to consumers. It was founded in 2015 and currently works in 35 cities across the country. It has lent loans worth Rs 6,500 crore till now.
According to ET, Rupeek’s founder and CEO Sumit Maniyar said that the decision has been taken due to a ‘subdued macro economic environment’. He also said that it has ‘compelled’ the company to relook at its costs and make the organisational structure ‘leaner.